Workers’ Comp vs. General Liability: What’s the Difference (and Do You Need Both)?
5 min read · Updated June 20, 2026
Contractors carry both, clients require both, and people mix them up constantly. Workers’ comp and general liability are two different policies for two different risks — and confusing them is exactly what leads to an uninsured sub on your audit. Here’s the clean version.
Workers’ comp: your own workers’ injuries
Workers’ comp pays medical bills and lost wages for your workers when they’re hurt on the job. It’s about injuries to the people doing the work — your employees, and uninsured subs who get treated as yours.
General liability: damage to others
General liability covers third-party bodily injury and property damage your business causes — a client tripping on your equipment, your crew damaging a customer’s property. It’s about harm to people and things outside your workforce.
Why the difference matters at audit
Here’s the trap: a subcontractor’s general liability certificate does not keep them off your workers’ comp audit. Only a workers’ comp line does. Auditors look specifically for WC — a sub with GL but no WC is still chargeable to you. What makes a COI actually count →
And they’re listed differently on a COI
General liability uses additional-insured status; workers’ comp doesn’t work that way. Certificate holder vs. additional insured → When you collect a sub’s certificate, confirm the WC line is there, not just GL.
Do you need both?
Most contractors do, and GCs and clients typically require both. They cover different risks, so one can’t replace the other. If a worker injury is the concern, that’s workers’ comp — and it’s why GCs care so much about your subs’ coverage.
Check that your subs carry the right line →
General information for contractors, not insurance advice. Coverage requirements vary by state, trade, and contract — confirm yours.
Frequently asked questions
What’s the difference between workers’ comp and general liability?
Workers’ comp covers your own workers’ job injuries — medical and wage benefits. General liability covers third-party bodily injury and property damage your business causes. They’re separate policies and don’t substitute for each other.
Does general liability cover employee injuries?
No. Employee and subcontractor job injuries fall under workers’ comp. A general liability certificate doesn’t exclude a sub from your workers’ comp audit.
Do I need both workers’ comp and general liability?
Most contractors do, and GCs and clients often require both. They cover different risks, so one doesn’t replace the other.
See your own exposure — free
Two free tools, no signup: estimate your audit surprise, and check whether your subs’ COIs actually protect you.
Related guides
Do You Need Workers’ Comp to Get a Contractor’s License?
In many states, proof of workers’ comp (or a valid exemption) is part of getting and keeping a contractor’s license. Here’s how it works and what happens if it lapses.
5 min read · Read →Certificate Holder vs. Additional Insured: What Contractors Actually Need
“Certificate holder” and “additional insured” are not the same thing, and confusing them leaves you exposed. Here’s what each means and what to ask subs for.
5 min read · Read →Is a General Contractor Liable If a Subcontractor’s Worker Gets Hurt?
If an uninsured sub’s worker is injured on your job, you can end up responsible — the “statutory employer” rule. Here’s how it works and how a COI protects you.
6 min read · Read →